Better with age? How are you managing your aging workforce?

Written by

Susan Shemanski, VP Client Services

July 09, 2013

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Do you have a family member who is still working well past retirement age? You're not alone. A recent AARP study reported that 70% of U.S. workers plan on working past retirement age. In 2008, there were 28 million workers in the American workforce over the age of 55. By 2016, studies show there will be 40 million workers in this category – a 43% increase, when our younger workforce is only expected to increase by 5-7%.

Some of the reasons for the increase in this age group are:

Baby Boomer generation: reaching retirement age

Economic struggles: we are still experiencing a decline in home values and a low return on 401k plans

Rising healthcare costs: a 65-year-old couple with median prescription costs can currently expect to pay $283,000 for medical bills throughout retirement*

Declining pensions: only 60% of companies still offer a pension plan

This demographic shift is requiring companies to change the way they think about employee safety, wellness programs, benefit and insurance packages, and even return-to-work strategies after an accident or illness occurs. At Sedgwick, we are embracing the change and realize the value of the older worker. We recommend developing strategies to work with challenges and capitalize on the advantages of older workers, strengthening your workforce and productivity.

From a positive perspective, with age we get the benefits of expertise, loyalty, commitment to quality and better judgment. Older workers also make great mentors. From a risk standpoint, older workers experience the lowest number of work-related injuries. At the same time, though, workers 35 and older have loss severities 50% higher than workers under 35. Older workers tend to have more rotator cuff and knee injuries which result in more surgeries and more physical therapy visits vs. younger workers, who generally have more back strains and ankle sprains. Older workers also tend to have more comorbidities such as obesity, diabetes and arthritis. All of these conditions result in more treatments and a longer recovery time. Higher wages also contribute to higher indemnity costs. And, on top of it all, the Baby Boomer generation struggles with higher stress levels resulting from family demands, boomerang children, grandchildren they help raise and the care of aging parents.

How do we start thinking about changing our workplaces to accommodate the aging population? By considering the challenges older workers are experiencing, we can adapt and assist:

Susan thanks for a very good post. My father is a prime example working at 80 and caring for grandchildren at home. I face a longer work life and wonder how my health care will be addressed as I probably work well past 65. I look forward to learning more about this how it shapes in the future.

Informative, true and eye opening along with thought provoking. Times have changed since my fathers era, as he only worked for one employer, DuPont and retired at 50 years old. With his pension and my mothers teaching pension, they were able to live comfortably in retirement. Now that Dad is no longer with us, if it were not for Mom's teaching retirement, SS, and Dad's portion of his retirement, she would not be able to retain her lifestyle. Thank you.

Susan, your post provides a refreshing perspective on "the aging workforce" dilemma that is facing most employers. Typically, the discussion around the aging workforce seems to focus only on the impact to loss costs after the fact and whether or not the employer should even have such a "seasoned" workforce. You are spot on that we MUST realize the value of the older worker and take proactive steps to protect the health and safety of those persons.